Correlation Between 159005 and New China
Specify exactly 2 symbols:
By analyzing existing cross correlation between 159005 and New China Life, you can compare the effects of market volatilities on 159005 and New China and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in 159005 with a short position of New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and New China.
Diversification Opportunities for 159005 and New China
Almost no diversification
The 3 months correlation between 159005 and New is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life and 159005 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on 159005 are associated (or correlated) with New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of 159005 i.e., 159005 and New China go up and down completely randomly.
Pair Corralation between 159005 and New China
Assuming the 90 days trading horizon 159005 is expected to generate 0.01 times more return on investment than New China. However, 159005 is 126.32 times less risky than New China. It trades about 0.21 of its potential returns per unit of risk. New China Life is currently generating about -0.03 per unit of risk. If you would invest 9,987 in 159005 on August 29, 2024 and sell it today you would earn a total of 13.00 from holding 159005 or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. New China Life
Performance |
| Timeline |
| 159005 |
| New China Life |
159005 and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and New China
The main advantage of trading using opposite 159005 and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, New China can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in New China will offset losses from the drop in New China's long position.The idea behind 159005 and New China Life pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| New China vs. Eastroc Beverage Group | New China vs. Hangzhou Coco Healthcare | New China vs. Dazhong Transportation Group | New China vs. CICC Fund Management |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |